SSA Renews IBI Focus Software License for $7.2M via Full and Open Competition

Contract Overview

Contract Amount: $7,203,583 ($7.2M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Social Security Administration

Start Date: 2024-12-19

End Date: 2026-12-14

Contract Duration: 725 days

Daily Burn Rate: $9.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ESTABLISH A GSA DELIVERY ORDER, CONSISTING OF ONE 12-MONTH BASE PERIOD AND FOUR 12-MONTH OPTION PERIODS, FOR A LICENSE SUBSCRIPTION RENEWAL TO IBI FOCUS SOFTWARE. PERIOD OF PERFORMANCE: 12/15/2024 - 12/14/2029 (PROVIDED ALL OPTIONS ARE EXERCISED). PR

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $7.2 million to CARAHSOFT TECHNOLOGY CORP for work described as: ESTABLISH A GSA DELIVERY ORDER, CONSISTING OF ONE 12-MONTH BASE PERIOD AND FOUR 12-MONTH OPTION PERIODS, FOR A LICENSE SUBSCRIPTION RENEWAL TO IBI FOCUS SOFTWARE. PERIOD OF PERFORMANCE: 12/15/2024 - 12/14/2029 (PROVIDED ALL OPTIONS ARE EXERCISED). PR Key points: 1. The contract is a renewal for IBI Focus software, a critical tool for the Social Security Administration (SSA). 2. Carahsoft Technology Corp is the incumbent contractor. 3. The contract was awarded using full and open competition, suggesting a competitive pricing environment. 4. The software publisher sector is generally stable, but specific software licensing renewals can be subject to price increases.

Value Assessment

Rating: good

The total value of $7.2M over five years appears reasonable for a specialized software license renewal. Benchmarking against similar enterprise software subscriptions would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The competitive award process is expected to yield a fair price, minimizing unnecessary taxpayer expenditure for this essential software.

Public Impact

Ensures continued operation of critical SSA functions reliant on IBI Focus software. Supports agency efficiency by providing necessary software tools to employees. The renewal process highlights the ongoing need for specialized software in government operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation in future option periods.
Dependence on a single software vendor for critical operations.

Positive Signals

Awarded through full and open competition.
Incumbent contractor provides continuity of service.
Firm fixed price contract provides cost certainty.

Sector Analysis

The IT sector, specifically software publishers, is characterized by rapid innovation and evolving licensing models. Government agencies often rely on specialized software for core functions, making renewals a common spending category. Benchmarks for similar enterprise software licenses vary widely based on functionality and user base.

Small Business Impact

This contract was awarded to Carahsoft Technology Corp, which is a large business. There is no indication that small businesses were involved in this specific delivery order, though Carahsoft may utilize small business subcontractors in other areas.

Oversight & Accountability

The contract was awarded as a delivery order under a GSA schedule, which typically involves pre-negotiated terms and conditions. Oversight would focus on performance monitoring and adherence to the contract terms throughout the period of performance.

Related Government Programs

Software Publishers
Social Security Administration Contracting
Social Security Administration Programs

Risk Flags

Potential for price increases in option periods.
Vendor lock-in risk.
Limited competition for specialized software.
Dependence on a single software provider.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $7.2 million to CARAHSOFT TECHNOLOGY CORP. ESTABLISH A GSA DELIVERY ORDER, CONSISTING OF ONE 12-MONTH BASE PERIOD AND FOUR 12-MONTH OPTION PERIODS, FOR A LICENSE SUBSCRIPTION RENEWAL TO IBI FOCUS SOFTWARE. PERIOD OF PERFORMANCE: 12/15/2024 - 12/14/2029 (PROVIDED ALL OPTIONS ARE EXERCISED). PR

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $7.2 million.

What is the period of performance?

Start: 2024-12-19. End: 2026-12-14.

What is the specific functionality of IBI Focus software and how critical is it to SSA's mission?

IBI Focus software is a data integration and analytics platform. Its criticality to the SSA's mission likely lies in its ability to process, analyze, and report on vast amounts of social security data, supporting program administration, fraud detection, and policy analysis. Without it, key operational functions could be significantly hampered, impacting service delivery and agency effectiveness.

What are the risks associated with renewing a software license with the same vendor, even under competition?

Even with competition, risks include vendor lock-in, where switching costs are prohibitively high, allowing the vendor to maintain premium pricing. There's also the risk of the vendor discontinuing support for older versions or forcing upgrades. Furthermore, the competitive landscape for highly specialized software might be limited, reducing genuine price pressure.

How does the firm fixed price contract structure benefit the government in this renewal scenario?

A firm fixed price (FFP) contract provides the most cost certainty for the government. It means the price is set and will not increase, regardless of the contractor's actual costs. This structure is beneficial for predictable expenses like software license renewals, protecting the agency and taxpayers from unexpected cost overruns during the contract period.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 28321325Q00000010

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11493 SUNSET HILLS RD, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,746,260

Exercised Options: $7,203,583

Current Obligation: $7,203,583

Actual Outlays: $7,203,583

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSWA18D008F

IDV Type: FSS

Timeline